To manipulate the price of securities, Taub engaged repeatedly in a series of contemporaneous transactions designed to artificially influence the market price of the securities of various publicly traded companies. He also induced other market participants to trade in those securities based on the false impression that was real market interest in the securities. He used “Run Based Manipulation” and “Order Based Manipulation” methods.
Run Based Manipulation is a type of securities manipulation where the manipulator takes either a long or a short position in a security. The manipulator then enters orders or trades in a manner designed to inflate or deflate the price of the security, at the same time trying to attract others to trade the security then finally reverse their position at the inflated or deflated price.
A common feature of Run Based Manipulation is that the manipulator profits directly from the manipulated market by exploiting investors who unknowingly bought at inflated prices or sold at depressed prices.
